NYSE
CTP

CTPartners Executive Search Inc.

Shareholder Securities Fraud Litigation

Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against CTPartners Executive Search Inc. (NYSE: CTP)

Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities that purchased the common stock of CTPartners Executive Search Inc. (“CTPartners” or the “Company”) (NYSE MKT: CTP) between February 26, 2014 and January 28, 2015, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of CTPartners during the Class Period, or purchased shares prior to the Class Period and still hold CTPartners, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com.

CTPartners is a leading provider of retained executive search services to clients on a global basis.  The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects.  Specifically, the Complaint alleges that the defendants concealed from the investing public: (1) that the Company had long standing employment discrimination issues that exposed the Company to the heightened risk that its reputation and ability to attract and retain search consultants would be significantly damaged; (2) that the Company was experiencing declining earnings due to increased business integration, administrative and management expenses that were outpacing revenue growth; and (3) that, based on the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company, its business and prospects.  As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, on January 21, 2015, CTPartners announced its preliminary fourth quarter and full year 2014 financial results.  The Company announced preliminary adjusted EPS for the quarter well below its original guidance.  CTPartners blamed the miss on over $1.3 million in purportedly unanticipated expenses related to increased management, administrative and business development costs.

Then, on January 28, 2015, the Company withdrew its preliminary fourth quarter and year-end guidance and revised downward its earnings guidance for the first quarter and full fiscal year 2015.  The Company stated that the downward revision was due to a $1.7 million increase in “compensation expense” for employee bonuses.  In addition, for the second time in two months, CTPartners announced that it was withdrawing a proposed stock offering.

On this news, shares in CTPartners plummeted over 33%, closing at $4.35 per share on January 29, 2015, on extraordinarily high trading volume.

If you wish to serve as lead plaintiff, you must move the Court no later than April 28, 2015.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

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